Dollar on back foot to begin year

Dollar on back foot to begin year

Market risk appetite started strong for the first workday of 2021. Investors are moving towards riskier assets as expectations for a global economic recovery support risk-on trading. The greenback lost ground versus nearly every major currency, trading around weakest levels in almost three years.

Monday: US Manufacturing, UK Manufacturing, Canada Manufacturing 
Wednesday: US Durable Goods
Thursday: US Initial Jobless Claims
  • FX Rates
    January 4, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.

  • USD

    The dollar fell to the lowest level since February of 2018 - a weak start on the first workday of the new year as evidence of global recovery sent investors into riskier assets. Over the weekend, a recording of President Trump asking Georgia state election officials to find votes was released. Georgia will hold senate runoff elections tomorrow. December PMI and construction spending are due out today.

    The pound edged slightly higher but trailed amid fears of economic fallout after leaving the EU. The pound briefly touched 1.37 for the first time since 2018.
    The euro rose against the dollar to two-year highs on dollar weakness and as signs of economic recovery in factory indexes bolstered risk appetite.
    The Canadian dollar strengthened alongside the market risk appetite. USD/CAD fell as low as 1.2665 amidst a brief pop higher for WTI crude oil. The currency pair has normalized to the 1.27 level.
    The onshore yuan rose 1.1% breaching 6.5 per USD for the first time since June 2018.

    The yen advanced to two week highs on dollar weakness and amid a surge of infections in Japan.

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Kathryn Garvey
Kathryn Garvey

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